Bank of America—the largest US bank—has just said that it will halt foreclosures in 23 states due to documentation irregularities. How did we get into the foreclosure crisis in the first place?

By

October 15, 2010

In early October, Bank of America—the largest US bank—said that it would stop foreclosures in 23 states. Amid claims of illegal loan practices, GMAC Mortgage and JPMorgan Chase quickly followed suit. But why are we now facing an epidemic of foreclosures, and what caused this crisis in the first place? On this week's episode of The Breakdown, DC Editor Chris Hayes and AlterNet's economics editor Zach Carter answer listeners' questions about how we got into the foreclosure documentation mess and other banking conundrums, such as: what is a robo-signer?

In early October, Bank of America—the largest US bank—said that it would halt foreclosures in 23 states. Amid claims of illegal loan practices, GMAC Mortgage and JPMorgan Chase quickly followed suit. Why are we now facing an epidemic of foreclosures, and what caused this crisis in the first place? On this week’s episode of The Breakdown, DC Editor Chris Hayes and AlterNet’s economics editor Zach Carter answer listeners’ questions about how we got into the foreclosure documentation mess and other banking conundrums, such as: what is a robo-signer?